Document and Entity Information
Document and Entity Information | 12 Months Ended |
Mar. 31, 2018shares | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | HIGHWAY HOLDINGS LTD |
Entity Central Index Key | 1,026,785 |
Document Type | 20-F |
Trading Symbol | HIHO |
Document Period End Date | Mar. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --03-31 |
Entity a Well-known Seasoned Issuer | No |
Entity a Voluntary Filer | No |
Entity's Reporting Status Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 0 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,018 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 19,166 | $ 19,603 | $ 22,935 |
Cost of sales | (12,424) | (14,033) | (17,007) |
Gross profit | 6,742 | 5,570 | 5,928 |
Selling, general and administrative expenses | (4,804) | (4,809) | (4,412) |
Operating income | 1,938 | 761 | 1,516 |
Non-operating income (expense): | |||
Exchange (loss) gain, net | 63 | (19) | (21) |
Interest income | 16 | 8 | 10 |
Other income | 5 | 11 | 2 |
Gain on disposal of property, plant and equipment | 50 | ||
Total non-operating (expense) income | 134 | (9) | |
Income before income taxes | 2,072 | 761 | 1,507 |
Income taxes (note 3) | (512) | (236) | (243) |
Net income | 1,560 | 525 | 1,264 |
Net (profit) loss attributable to non-controlling interests | (10) | 2 | (13) |
Net income attributable to Highway Holdings Limited's shareholders | $ 1,550 | $ 527 | $ 1,251 |
Net income per share: | |||
- basic (in dollars per share) | $ 0.41 | $ 0.14 | $ 0.33 |
- diluted (in dollars per share) | $ 0.41 | $ 0.14 | $ 0.33 |
Weighted average number of shares outstanding: | |||
- basic (in shares) | 3,801,874 | 3,801,874 | 3,801,874 |
- diluted (in shares) | 3,801,874 | 3,801,874 | 3,801,874 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||
Net income | $ 1,560 | $ 525 | $ 1,264 |
Other comprehensive (loss) income, net of tax: | |||
Change in cumulative foreign currency translation adjustment | 136 | (102) | (42) |
Other comprehensive income | 1,696 | 423 | 1,222 |
Other comprehensive (income) loss attributable to non-controlling interest | (10) | 2 | (13) |
Other comprehensive income attributable to Highway Holdings Limited's shareholders | $ 1,686 | $ 425 | $ 1,209 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Current assets: | ||
Cash and cash equivalents (note 4) | $ 11,267 | $ 10,028 |
Accounts receivable, net (note 5) | 2,223 | 3,403 |
Inventories, net (note 6) | 2,933 | 2,265 |
Prepaid expenses and other current assets | 749 | 714 |
Total current assets | 17,172 | 16,410 |
Goodwill | 77 | 77 |
Property, plant and equipment, net (note 7) | 770 | 954 |
Long-term deposits | 111 | 111 |
Investments in equity method investees (note 8) | ||
TOTAL ASSETS | 18,130 | 17,552 |
Current liabilities: | ||
Accounts payable | 900 | 2,391 |
Accrued expenses and other current liabilities (note 9) | 3,982 | 3,053 |
Income tax payable | 803 | 328 |
Dividend payable | 623 | 438 |
Total current liabilities | 6,308 | 6,210 |
Deferred income taxes (note 3) | 32 | 32 |
Total liabilities | 6,340 | 6,242 |
Shareholders' equity: | ||
Common shares, $0.01 par value (Authorized: 20,000,000 shares; 3,801,874 shares as of March 31, 2017, 2018, issued and outstanding) | 38 | 38 |
Additional paid-in capital | 11,370 | 11,370 |
Retained profits | 347 | 13 |
Treasury shares, at cost - 5,049 shares as of March 31, 2017 and 2018 (note 11) | (14) | (14) |
Accumulated other comprehensive loss | (136) | |
Total Highway Holdings shareholder's equity | 11,741 | 11,271 |
Non-controlling interest | 49 | 39 |
Total Equity | 11,790 | 11,310 |
TOTAL LIABILITIES AND EQUITY | $ 18,130 | $ 17,552 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2018 | Mar. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 3,801,874 | 3,801,874 |
Common stock, shares outstanding | 3,801,874 | 3,801,874 |
Treasury shares | 5,049 | 5,049 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Common shares, issued and outstanding [Member] | Additional paid-in capital [Member] | Retained profits [Member] | Accumulated other comprehensive income (losses) [Member] | Treasury shares, at cost [Member] | Total Highway Holdings Limited's Shareholders' equity [Member] | Non-controlling interests [Member] | Total |
Balance at beginning at Mar. 31, 2015 | $ 38 | $ 11,370 | $ 782 | $ 8 | $ (14) | $ 12,184 | $ 49 | $ 12,233 |
Balance at beginning (in shares) at Mar. 31, 2015 | 3,802 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 1,251 | 1,251 | 13 | 1,264 | ||||
Cash dividend ($0.40, $0.27 and $0.32 per share) | (1,521) | (1,521) | (1,521) | |||||
Translation adjustments | (42) | (42) | (42) | |||||
Balance at end at Mar. 31, 2016 | $ 38 | 11,370 | 512 | (34) | (14) | 11,872 | 62 | 11,934 |
Balance at end (in shares) at Mar. 31, 2016 | 3,802 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 527 | 527 | (2) | 525 | ||||
Cash dividend ($0.40, $0.27 and $0.32 per share) | (1,026) | (1,026) | (1,026) | |||||
Acquisition of additional interests in subsidiaries | (21) | (21) | ||||||
Translation adjustments | (102) | (102) | (102) | |||||
Balance at end at Mar. 31, 2017 | $ 38 | 11,370 | 13 | (136) | (14) | 11,271 | 39 | 11,310 |
Balance at end (in shares) at Mar. 31, 2017 | 3,802 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 1,550 | 1,550 | 10 | 1,560 | ||||
Cash dividend ($0.40, $0.27 and $0.32 per share) | (1,216) | (1,216) | (1,216) | |||||
Translation adjustments | 136 | 136 | 136 | |||||
Balance at end at Mar. 31, 2018 | $ 38 | $ 11,370 | $ 347 | $ (14) | $ 11,741 | $ 49 | $ 11,790 | |
Balance at end (in shares) at Mar. 31, 2018 | 3,802 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends, per share (in dollars per share) | $ 0.32 | $ 0.27 | $ 0.40 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 1,560 | $ 525 | $ 1,264 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation of property, plant and equipment | 319 | 266 | 317 |
Write-down (reverse of write down) for doubtful receivables | (66) | 60 | |
Write-down of inventories | 45 | 41 | 25 |
Write-down of property, plant and equipment | 113 | 117 | |
Gain on disposal of property, plant and equipment | (50) | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | 1,246 | 858 | (1,378) |
Inventories | (580) | (834) | 687 |
Prepaid expenses and other current assets | 17 | 286 | 249 |
Accounts payable | (1,507) | 1,040 | (291) |
Accrued expenses and other current liabilities | 852 | 99 | 195 |
Income tax payable | 439 | (121) | 103 |
Long-term deposits | 4 | (32) | |
Net cash provided by operating activities | 2,388 | 2,224 | 1,256 |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | (271) | (197) | (524) |
Proceeds from disposal of property, plant and equipment | 129 | 60 | |
Net cash used in investing activities | (142) | (197) | (464) |
Cash flows from financing activities: | |||
Acquisition of additional interests in a subsidiary | (9) | ||
Cash dividends paid | (1,031) | (1,126) | (1,364) |
Net cash used in financing activities | (1,031) | (1,135) | (1,364) |
Net (decrease) increase in cash and cash equivalents | 1,215 | 892 | (572) |
Cash and cash equivalents at the beginning of year | 10,028 | 9,140 | 9,727 |
Effect of exchange rate changes on cash and cash equivalents | 24 | (4) | (15) |
Cash and cash equivalents at the end of year | 11,267 | 10,028 | 9,140 |
Supplemental cash flow information: | |||
Income taxes | $ 35 | $ 350 | $ 120 |
ORGANIZATION AND BASIS OF FINAN
ORGANIZATION AND BASIS OF FINANCIAL STATEMENTS | 12 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF FINANCIAL STATEMENTS | 1. ORGANIZATION AND BASIS OF FINANCIAL STATEMENTS Highway Holdings Limited (the “Company”) was incorporated in the British Virgin Islands on July 20, 1990. It operates through its subsidiaries operating in Hong Kong Special Administrative Region (“Hong Kong”), Shenzhen (comprising Long Hua) of the People’s Republic of China (“China”) and Yangon of the Republic of the Union of Myanmar (“Myanmar”). The Company and its subsidiaries (collectively referred as the “Group”) are engaged in manufacturing and sale of metal, plastic and electronic parts and components. The Group’s manufacturing activities are principally conducted in Shenzhen of China and Yangon of Myanmar, while its selling activities are principally conducted in Hong Kong. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Principles of consolidation (b) Use of estimates (c) Investments under equity method When the estimated amount to be realized from the investments falls below its carrying value, an impairment charge is recognized in the consolidated statements of operations when the decline in value is considered other than temporary. (d) Cash and cash equivalents Cash equivalents are placed with financial institutions with high credit ratings and quality. (e) Accounts receivable (f) Inventories (g) Goodwill In 2016, 2017 and 2018, management compared the carrying value of the reporting unit, inclusive of assigned goodwill, to its respective fair value which is the step one of the two-step impairment test. The fair value of all reporting unit was estimated by using the income approach. Based on this quantitative test, it was determined that the fair value of the reporting unit tested exceeded its carrying amount and, therefore, step 2 of the two-step good will impairment test was unnecessary. The management concluded that goodwill was not impaired as of March 31, 2016, 2017 and 2018. (h) Property, plant and equipment (i) Impairment or disposal of long-lived assets No impairment expenses are recognized for long-lived assets during the years ended March 31, 2016, 2017 and 2018. (j) Concentration of credit risk The risks with respect to accounts receivables are mitigated by credit evaluations performed on the customers or debtors and ongoing monitoring of outstanding balances. The Group establishes an allowance for doubtful accounts based upon estimates, factors surrounding the credit risk of specific customers and other information. Accounts receivable are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. (k) Revenue recognition ● Persuasive evidence of an arrangement exists; ● Delivery has occurred; ● Price to the customer is fixed or determinable; and ● Collectability is reasonably assured. Revenue from sales of products is recognized when the title is passed to customers upon shipment and when collectability is reasonably assured. The Group does not provide its customers with the right of return (except for quality) or price protection. There are no customer acceptance provisions associated with the Group’s products. All sales are based on firm customer orders with fixed terms and conditions, which generally cannot be modified. (l) Staff retirement plan costs (m) Foreign currency translations and transactions The books and records of the Company’s major subsidiaries are maintained in their respective local currencies, the Hong Kong dollars or Renminbi, which are also their respective functional currencies. All assets and liabilities are translated at the rates of exchange prevailing at the balance sheet date and all income and expense items are translated at the average rates of exchange over the year. All exchange differences arising from the translation of subsidiaries’ financial statements are recorded as a component of comprehensive income (loss). (n) Income taxes The Group recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group records interest related to unrecognized tax benefits and penalties, if any, within income tax expenses. (o) Operating leases (p) Net income per share (q) Comprehensive (loss) income The Group presents the components of net income, the components of other comprehensive (loss) income and total comprehensive income in two separate but consecutive statements. (r) Fair value measurement and financial instruments ● Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. ● Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. ● Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Group did not have any financial instruments that were required to be measured at fair value on a recurring basis as of March 31, 2017 and 2018. As of March 31, 2017 and 2018, the Group did not have any non-financial assets and liabilities that were recognized or disclosed at fair value in the financial statements, at least annually, on a recurring basis, nor did the Group have any assets or liabilities measured at fair value on a non-recurring basis. The carrying amounts of financial instruments, which consist of cash and cash equivalents, accounts receivable, other current assets, accounts payable and other liabilities approximate their fair values due to the short term nature of these instruments. (s) Non-controlling interest (t) Recent issued accounting standards not yet adopted Subsequently, the FASB issued the following various updates affecting the guidance in ASU 2014-09: ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations; ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The Group must adopt ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 with ASU 2014-09 (collectively, the “new revenue standards”). In November 2017, the FASB issued ASU No. 2017-14, Income Statement - Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606). ASU 2017-14 includes amendments to certain SEC paragraphs within the FASB Accounting Standards Codification (Codification). ASU 2017-14 amends the Codification to incorporate the following previously issued guidance from the SEC. The amendments in ASU No. 2017-14 amends the Codification to incorporate SEC Staff Accounting Bulletin (SAB) No. 116 and SEC Interpretive Release on Vaccines for Federal Government Stockpiles (SEC Release No. 33-10403) that bring existing SEC staff guidance into conformity with the FASB’s adoption of and amendments to ASC Topic 606, Revenue from Contracts with Customers. The new revenue standards may be applied retrospectively to each prior period presented (full retrospective method) or retrospectively with the cumulative effect recognized as of the date of initial application (the modified retrospective method). The Group has substantially completed its study on the impact that implementing this standard will have on its consolidated financial statements, related disclosures and the internal control over financial reporting as well as whether the effect will be material to the financial statements. Based on the results of the Group’s study to date, the standard will not be material to the financial statements at adoption. An analysis of the control environment was completed and appropriate updates to the control processes have been implemented. Additionally, the Group’s revenue disclosures will change in fiscal 2019 and beyond. The new disclosures will require more granularity into the sources of revenue, as well as the assumptions about recognition timing, and include the selection of certain practical expedients and policy elections. The Group will use the modified retrospective approach upon adoption of this guidance effective April 1, 2018. The Group has assessed the impacts of the new accounting standard and has implemented accounting and operational processes and controls to ensure compliance with the new standard. The Group expects there is no material impact upon adoption of this standard on the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on the balance sheets. This ASU requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a term of twelve months or less. The ASU does not significantly change the lessees’ recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Lessors’ accounting under the ASC is largely unchanged from the previous accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition approach, which includes a number of practical expedients. For public business entities, the provisions of this guidance are effective for annual periods beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. The Group is currently gathering, documenting and analyzing lease agreements subject to this ASU and anticipates material addition to the consolidated balance sheets (upon adoption) of right-of-use assets, offset by the associated liabilities, due to the routine use of operating leases over time. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will be changed to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. The ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For public business entities that are U.S. SEC filers, the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Group is in the process of evaluating the impact of adoption of this guidance on the Group’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU addresses concerns regarding the cost and complexity of the two-step goodwill impairment test, the amendments in this ASU remove the second step of the test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. The update should be applied on a prospective basis. The nature of and reason for the change in accounting principle should be disclosed upon transition. For public companies, the update is effective for any annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Group expects there is no material impact upon adoption of this guidance on the Group’s consolidated financial statements. In September 2017, the FASB issued ASU No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments. The amendments in ASU No. 2017-13 amend the early adoption date option for certain companies related to the adoption of ASU No. 2014-09 and ASU No. 2016-02. The effective date is the same as the effective date and transition requirements for the amendments for ASU 2014-09 and ASU 2016-02. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 3. INCOME TAXES Income is subject to tax in the various countries in which the Group operates. No income tax arose in the United States of America in any of the periods presented. The Company is not taxed in the British Virgin Islands. The Group’s operating subsidiaries, other than Nissin Metal and Plastic (Shenzhen) Company Limited (“Nissin PRC”) and Kayser Myanmar Manufacturing Company Ltd. (“Kayser Myanmar”), are all incorporated in Hong Kong and are subject to Hong Kong taxation on income derived from their activities conducted in Hong Kong. Hong Kong Profits Tax has been calculated at 16.5% of the estimated assessable profit for the years ended March 31, 2016, 2017 and 2018. Nissin PRC, which is established and operated in China, is subject to the uniform income tax rate of 25% in China. The Group’s manufacturing operations were conducted mainly in Long Hua, Shenzhen and Yangon of Myanmar during the years ended March 31, 2016, 2017 and 2018. However, Kayser Myanmar enjoyed a tax exemption for the year ended March 31, 2016 and the period through the end of December, 31 2017, and Kayser Myanmar has been subjected to income tax rate of 25% starting from January 1, 2018. The components of income before income taxes are as follows: Year ended March 31, 2016 2017 2018 $ $ $ Hong Kong 1,361 513 955 China 146 248 1,060 Myanmar — — 57 1,507 761 2,072 The provision for income taxes consists of the following: Year ended March 31, 2016 2017 2018 $ $ $ Hong Kong Current tax 143 103 156 China Current tax 100 133 356 Total 243 236 512 A reconciliation between the provision for income taxes computed by applying the Hong Kong profits tax rate to profit before income taxes, the actual provision for income taxes is as follows: Year ended March 31, 2016 2017 2018 % % % Profits tax rate in Hong Kong 16.5 16.5 16.5 Non-deductible items/non-taxable income (Note) 9.7 15.2 2.1 Changes in valuation allowances (6.8 ) (5.9 ) (1.4 ) Overprovision of profits tax in prior year (0.2 ) (0.5 ) (2.1 ) Effect of different tax rate of subsidiaries operating in other jurisdictions 0.8 2.8 4.3 Others (4.0 ) 2.9 5.2 Effective tax rate 16.0 31.0 24.6 Note: Amount primarily represents non-deductible administrative expenses incurred by Nissin PRC and the Company. Deferred income tax (assets) liabilities are as follows: As of March 31, 2017 2018 $ $ Deferred tax liability: Property, plant and equipment 33 32 Deferred tax asset: Tax loss carryforwards (568 ) (474 ) Deferred deductible expenses — (74 ) Valuation allowance 567 548 Total net deferred tax asset (1 ) — Net deferred tax liability 32 32 Movement of valuation allowances are as follows: Year ended March 31, 2016 2017 2018 $ $ $ At the beginning of the year 722 612 567 Changes in prior year tax losses carried forward (8 ) — — Current year reduction (102 ) (45 ) (19 ) At the end of the year 612 567 548 A valuation allowance has been provided on the deferred tax asset because the Group believes it is not more than likely that the asset will be realized. As of March 31, 2017 and 2018, a valuation allowance was provided for the deferred tax asset relating to the future benefit of net operating loss carryforward and deferred deductible expenses, as the management determined that the net operating loss carryforward and deferred deductible expenses were not more likely than not to be utilized. If events occur in the future that allow the Group to realize more of its deferred tax assets than the presently recorded amount, an adjustment to the valuation allowance will be made when those events occur. As of March 31, 2017 and 2018, tax losses amounting to approximately $3,444 and $2,874, respectively may be carried forward indefinitely. As of March 31, 2017 and 2018, the Group’s China subsidiary had no tax loss that would expire five years from respective financial year when the losses are incurred. Uncertainties exist with respect to how China’s current income tax law applies to the Group’s overall operations, and more specifically, with regard to tax residency status. China’s Enterprise Income Tax (“EIT”) Law includes a provision specifying that legal entities organized outside of the China will be considered residents for China income tax purposes if their place of effective management or control is within China. The Implementation Rules to the EIT Law provides that non-resident legal entities will be considered as China residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting, properties, etc. occurs within China. The Company does not believe that its legal entities organized outside of China should be treated as residents for the EIT Law’s purposes. Substantially, the Company’s overall management and business operation are located outside China. The Company does not expect any significant adverse impact on the Company’s consolidated results of operations. The Group has made its assessment of the level of tax authority for each tax position (including the potential application of interest and penalties) based on the technical merits, and has measured the unrecognized tax benefits associated with the tax positions. Based on the evaluation by the Group, it was concluded that there are no significant uncertain tax positions requiring recognition in the consolidated financial statements. The Group classifies interest and/or penalties related to unrecognized tax benefits as a component of income tax provisions; however, as of March 31, 2017 and 2018, there is no interest and penalties related to uncertain tax positions, and the Group has no material unrecognized tax benefit which would favorably affect the effective income tax rate in future periods. The Group does not anticipate any significant increases or decreases to its liability for unrecognized tax benefit within the next twelve months. The fiscal years 2008 to 2018 remain subject to examination by the Hong Kong tax authority. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Mar. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | 4. CASH AND CASH EQUIVALENTS Cash and cash equivalents consisted of the following: As of March 31, 2017 2018 $ $ Cash on hand 2 2 Bank deposits 8,095 9,347 Short term investments 1,931 1,918 10,028 11,267 Short term investments are highly liquid investments which are unrestricted as to withdrawal and use, and which have maturities of one year or less. |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Mar. 31, 2018 | |
Accounts Receivable, Net [Abstract] | |
ACCOUNTS RECEIVABLE, NET | 5. ACCOUNTS RECEIVABLE, NET Accounts receivable, net is analyzed as follows: As of March 31, 2017 2018 $ $ Accounts receivable 3,469 2,223 Allowances for doubtful accounts (66 ) — 3,403 2,223 Details of the movements of the allowances for doubtful accounts are as follows: Year ended March 31, 2016 2017 2018 $ $ $ At beginning of year 6 6 66 Allowance (reverse) for the year — 60 (66 ) At end of year 6 66 — |
INVENTORIES, NET
INVENTORIES, NET | 12 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 6. INVENTORIES, NET Inventories consisted of the following: As of March 31, 2017 2018 $ $ Raw materials 1,914 2,112 Work in progress 71 116 Finished goods 280 705 2,265 2,933 Slow moving inventories amounting to $25, $41 and $45 were written off during the years ended March 31, 2016, 2017 and 2018, respectively. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | 7. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consisted of the following: As of March 31, 2017 2018 $ $ At cost: Machinery and equipment 12,386 12,482 Furniture and fixtures 442 443 Leasehold improvements 506 517 Motor vehicles 153 153 Total 13,487 13,595 Less: Accumulated depreciation and impairment (12,533 ) (12,825 ) Property, plant and equipment, net 954 770 Depreciation expense incurred for the years ended March 31, 2016, 2017 and 2018 were $317, $266 and $319, respectively. Write off of property, plant and equipment amounting to $117, $nil and $113 occurred during the years ended March 31, 2016, 2017 and 2018, respectively. |
INVESTMENTS IN EQUITY METHOD IN
INVESTMENTS IN EQUITY METHOD INVESTEES | 12 Months Ended |
Mar. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN EQUITY METHOD INVESTEES | 8. INVESTMENTS IN EQUITY METHOD INVESTEES The following table provides a reconciliation of the investments in equity method investees in the Group’s consolidated balance sheets as of March 31, 2017 and 2018 and the amount of underlying equity in net assets of the equity investees: As of March 31, 2017 2018 $ $ The Group’s proportionate share of equity in the net assets of equity investees 5 5 Less: Accumulated impairment losses recognized (5 ) (5 ) Investments in equity investees reported in the consolidated balance sheets — — As of December 31, 2017 and 2018, investment in equity method investees represented the 50% equity interest in Kayser Technik (Overseas) Inc. (K.T.I) (“Kayser Technik (Overseas)”), a company incorporated in Republic of Panama, which was formerly engaged in the trading of camera batteries, films, and disposable cameras. Kayser Technik (Overseas) was inactive in, and the investment was fully impaired as of March 31, 2017 and 2018. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Mar. 31, 2018 | |
Accrued Liabilities Current and Other Liabilities Current [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 9. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consisted of the following: As of March 31, 2017 2018 $ $ Accrued payroll 329 620 Accrued housing allowance 606 548 Accrued other social benefit 1,325 1,792 Deposits received from customers 20 17 Unbilled purchases from suppliers 178 238 Accrued audit fee 251 257 Others 344 510 3,053 3,982 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 10. COMMITMENTS AND CONTINGENCIES (a) The Group leases premises under various operating leases that do not contain any renewal or escalation clauses. Rental expense under operating leases was $1,111, $1,145 and $1,281 for the years ended March 31, 2016, 2017 and 2018, respectively. As of March 31, 2018, the Group is committed under operating leases requiring minimum lease payments as follows: $ Year ending March 31, 2019 1,296 2020 1,196 2021 and thereafter — 2,492 (b) As of March 31, 2017 and 2018, the Group had commitments for capital expenditure contracted for but not provided in the consolidated financial statements in respect of acquisition of property, plant and equipment of $20 and $nil, respectively. |
TREASURY STOCK
TREASURY STOCK | 12 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
TREASURY STOCK | 11. TREASURY STOCK a s of March 31, 2017 and 2018, 5,049 shares were held in treasury and were not eligible to vote. |
CONCENTRATIONS OF CREDIT RISK A
CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS | 12 Months Ended |
Mar. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS | 12. CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS The Group’s financial instruments that are exposed to concentrations of credit risk consist primarily of its cash and cash equivalents and trade receivables. The Group’s cash and cash equivalents are high-quality deposits placed with banking institutions with high credit ratings. This investment policy limits the Group’s exposure to concentrations of credit risk. The trade receivable balances largely represent amounts due from the Group’s principal customers who are generally international organizations with high credit ratings. Letters of credit are the principal security obtained to support lines of credit or negotiated contracts from a customer. As a consequence, related credit risk is limited. Accounts receivable from the three customers with the largest receivable balances as of March 31, 2017 and 2018 are as follows: Percentage of accounts receivable 2017 2018 % % Customer A 47.9 54.9 Customer B 13.0 9.0 Customer C 12.0 9.0 Three largest receivable balances 72.9 72.9 A substantial percentage of the Group’s sales are made to four customers and are typically on an open account basis. Customers accounting for 10% or more of total net sales in any of the years ended March 31, 2016, 2017 and 2018 are as follows: Year ended March 31, 2016 2017 2018 % % % Customer A (note a) 44.1 46.0 51.4 Customer B (note a) N/A 10.7 15.8 Customer C (note b) 12.2 11.6 10.8 Customer D (note b) 14.0 11.0 N/A 70.3 79.3 78.0 Notes: (a) Sales to this customer were reported in both of the Metal Stamping and Mechanical OEM and Electric OEM operating segments. (b) Sales to this customer were reported in the Electric OEM operating segment. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 12 Months Ended |
Mar. 31, 2018 | |
Net income per share: | |
NET INCOME PER SHARE | 13. NET INCOME PER SHARE The following table sets forth the computation of basic and diluted net income per share for years indicated: Year ended March 31, 2016 2017 2018 $ $ $ Net income attributable to Highway Holdings Limited’s shareholders, basic and diluted 1,251 527 1,550 Shares: Weighted average common shares used in computing basic net income per share 3,801,874 3,801,874 3,801,874 Net income per share, basic 0.33 0.14 0.41 No share option is outstanding for the years ended March 31, 2016, 2017 and 2018. |
STAFF RETIREMENT PLANS
STAFF RETIREMENT PLANS | 12 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
STAFF RETIREMENT PLANS | 14. STAFF RETIREMENT PLANS The Group operates a Mandatory Provident Fund (“MPF”) scheme for all qualifying employees in Hong Kong. The MPF is a defined contribution scheme and the assets of the scheme are managed by a trustee independent of the Group. The MPF is available to all employees aged 18 to 64 with at least 60 days of service under the employment of the Group in Hong Kong. Contributions are made by the Group to the MPF at a rate of 5% based on the staff’s relevant compensation. The Group’s full time employees in China participate in a government-mandated multiemployer defined contribution plan pursuant to which certain medical care unemployment insurance, employee housing fund and other welfare benefits are provided to employees. The China labor regulations require the Group to accrue for these benefits based on certain percentages of the employees’ salaries. No forfeited contributions may be used by the employer to reduce the existing level of contributions. The cost of the Group’s contribution to the staff retirement plans in Hong Kong and China amounted to $212, $227 and $242 for the years ended March 31, 2016, 2017 and 2018, respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 15. SEGMENT INFORMATION The Group’s chief operating decision maker evaluates segment performance and allocates resources based on several factors, of which the primary financial measure is operating income. The Group operates in two segments, Metal stamping and mechanical OEM segment and Electric OEM segment. The Metal stamping and mechanical OEM segment focuses on manufacturing and sale of metal parts and components. The Electric OEM segment focuses on manufacturing and sale of plastic and electronic parts and components. Intersegment sales arise from transfer of goods between segments. These sales are generally at price consistent with what the Group would charge third parties for similar goods. A summary of the net sales, profitability information and asset information by segment and geographical areas is shown below: Year ended March 31, 2016 2017 2018 $ $ $ Net sales: Metal stamping and Mechanical OEM 10,268 8,323 9,638 Electric OEM 12,667 11,280 9,528 Total net sales 22,935 19,603 19,166 Operating income: Metal stamping and Mechanical OEM 738 267 955 Electric OEM 916 646 1,123 Corporate (138 ) (152 ) (140 ) Total operating income 1,516 761 1,938 Depreciation and amortization expense: Metal stamping and Mechanical OEM 137 107 160 Electric OEM 180 159 159 Total depreciation and amortization 317 266 319 Capital expenditure: Metal stamping and Mechanical OEM 226 88 136 Electric OEM 298 109 135 Total capital expenditure 524 197 271 As of March 31, 2017 2018 $ $ Total assets: Metal stamping and Mechanical OEM 7,374 8,402 Electric OEM 8,597 9,535 Corporate 1,581 193 Total assets 17,552 18,130 As of March 31, 2017 2018 $ $ Property, plant and equipment: Metal stamping and Mechanical OEM 412 391 Electric OEM 542 379 Total property, plant and equipment 954 770 All of the Group’s sales are coordinated through its head office in Hong Kong. The Group considers revenues to be generated by geographic area based on the physical location of customers. The breakdown by geographic area is as follows: Year ended March 31, 2016 2017 2018 $ $ $ Net sales: Hong Kong and China 5,662 4,700 4,086 Europe 16,342 14,037 14,446 Other Asian countries 134 31 46 North America 797 835 588 22,935 19,603 19,166 All of the Group’s property, plant and equipment are located in Hong Kong, China and Myanmar. |
RELATED PARTY TRANSACTION
RELATED PARTY TRANSACTION | 12 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTION | 16. RELATED PARTY TRANSACTION There is no material related party transaction for the years ended March 31, 2016, 2017 and 2018. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Mar. 31, 2018 | |
Subsequent Event | |
SUBSEQUENT EVENT | 17. SUBSEQUENT EVENT The Group has evaluated events from year ended March 31, 2018 through the date the financial statements were issued. There were no subsequent events that need disclosure. |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of consolidation | (a) Principles of consolidation |
Use of estimates | (b) Use of estimates |
Investments under equity method | (c) Investments under equity method When the estimated amount to be realized from the investments falls below its carrying value, an impairment charge is recognized in the consolidated statements of operations when the decline in value is considered other than temporary. |
Cash and cash equivalents | (d) Cash and cash equivalents Cash equivalents are placed with financial institutions with high credit ratings and quality. |
Accounts receivable | (e) Accounts receivable |
Inventories | (f) Inventories |
Goodwill | (g) Goodwill In 2016, 2017 and 2018, management compared the carrying value of the reporting unit, inclusive of assigned goodwill, to its respective fair value which is the step one of the two-step impairment test. The fair value of all reporting unit was estimated by using the income approach. Based on this quantitative test, it was determined that the fair value of the reporting unit tested exceeded its carrying amount and, therefore, step 2 of the two-step good will impairment test was unnecessary. The management concluded that goodwill was not impaired as of March 31, 2016, 2017 and 2018. |
Property, plant and equipment | (h) Property, plant and equipment |
Impairment or disposal of long-lives assets | (i) Impairment or disposal of long-lived assets No impairment expenses are recognized for long-lived assets during the years ended March 31, 2016, 2017 and 2018. |
Concentration of credit risk | (j) Concentration of credit risk The risks with respect to accounts receivables are mitigated by credit evaluations performed on the customers or debtors and ongoing monitoring of outstanding balances. The Group establishes an allowance for doubtful accounts based upon estimates, factors surrounding the credit risk of specific customers and other information. Accounts receivable are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Revenue recognition | (k) Revenue recognition ● Persuasive evidence of an arrangement exists; ● Delivery has occurred; ● Price to the customer is fixed or determinable; and ● Collectability is reasonably assured. Revenue from sales of products is recognized when the title is passed to customers upon shipment and when collectability is reasonably assured. The Group does not provide its customers with the right of return (except for quality) or price protection. There are no customer acceptance provisions associated with the Group’s products. All sales are based on firm customer orders with fixed terms and conditions, which generally cannot be modified. |
Staff retirement plan costs | (l) Staff retirement plan costs |
Foreign currency translations and transactions | (m) Foreign currency translations and transactions The books and records of the Company’s major subsidiaries are maintained in their respective local currencies, the Hong Kong dollars or Renminbi, which are also their respective functional currencies. All assets and liabilities are translated at the rates of exchange prevailing at the balance sheet date and all income and expense items are translated at the average rates of exchange over the year. All exchange differences arising from the translation of subsidiaries’ financial statements are recorded as a component of comprehensive income (loss). |
Income taxes | (n) Income taxes The Group recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group records interest related to unrecognized tax benefits and penalties, if any, within income tax expenses. |
Operating leases | (o) Operating leases |
Net income per share | (p) Net income per share |
Comprehensive (loss) income | (q) Comprehensive (loss) income The Group presents the components of net income, the components of other comprehensive (loss) income and total comprehensive income in two separate but consecutive statements. |
Fair value measurement and financial instruments | (r) Fair value measurement and financial instruments ● Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. ● Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. ● Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Group did not have any financial instruments that were required to be measured at fair value on a recurring basis as of March 31, 2017 and 2018. As of March 31, 2017 and 2018, the Group did not have any non-financial assets and liabilities that were recognized or disclosed at fair value in the financial statements, at least annually, on a recurring basis, nor did the Group have any assets or liabilities measured at fair value on a non-recurring basis. The carrying amounts of financial instruments, which consist of cash and cash equivalents, accounts receivable, other current assets, accounts payable and other liabilities approximate their fair values due to the short term nature of these instruments. |
Non-controlling interest | (s) Non-controlling interest |
Recent issued accounting standards not yet adopted | (t) Recent issued accounting standards not yet adopted Subsequently, the FASB issued the following various updates affecting the guidance in ASU 2014-09: ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations; ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The Group must adopt ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 with ASU 2014-09 (collectively, the “new revenue standards”). In November 2017, the FASB issued ASU No. 2017-14, Income Statement - Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606). ASU 2017-14 includes amendments to certain SEC paragraphs within the FASB Accounting Standards Codification (Codification). ASU 2017-14 amends the Codification to incorporate the following previously issued guidance from the SEC. The amendments in ASU No. 2017-14 amends the Codification to incorporate SEC Staff Accounting Bulletin (SAB) No. 116 and SEC Interpretive Release on Vaccines for Federal Government Stockpiles (SEC Release No. 33-10403) that bring existing SEC staff guidance into conformity with the FASB’s adoption of and amendments to ASC Topic 606, Revenue from Contracts with Customers. The new revenue standards may be applied retrospectively to each prior period presented (full retrospective method) or retrospectively with the cumulative effect recognized as of the date of initial application (the modified retrospective method). The Group has substantially completed its study on the impact that implementing this standard will have on its consolidated financial statements, related disclosures and the internal control over financial reporting as well as whether the effect will be material to the financial statements. Based on the results of the Group’s study to date, the standard will not be material to the financial statements at adoption. An analysis of the control environment was completed and appropriate updates to the control processes have been implemented. Additionally, the Group’s revenue disclosures will change in fiscal 2019 and beyond. The new disclosures will require more granularity into the sources of revenue, as well as the assumptions about recognition timing, and include the selection of certain practical expedients and policy elections. The Group will use the modified retrospective approach upon adoption of this guidance effective April 1, 2018. The Group has assessed the impacts of the new accounting standard and has implemented accounting and operational processes and controls to ensure compliance with the new standard. The Group expects there is no material impact upon adoption of this standard on the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on the balance sheets. This ASU requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a term of twelve months or less. The ASU does not significantly change the lessees’ recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Lessors’ accounting under the ASC is largely unchanged from the previous accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition approach, which includes a number of practical expedients. For public business entities, the provisions of this guidance are effective for annual periods beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. The Group is currently gathering, documenting and analyzing lease agreements subject to this ASU and anticipates material addition to the consolidated balance sheets (upon adoption) of right-of-use assets, offset by the associated liabilities, due to the routine use of operating leases over time. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will be changed to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. The ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For public business entities that are U.S. SEC filers, the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Group is in the process of evaluating the impact of adoption of this guidance on the Group’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU addresses concerns regarding the cost and complexity of the two-step goodwill impairment test, the amendments in this ASU remove the second step of the test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. The update should be applied on a prospective basis. The nature of and reason for the change in accounting principle should be disclosed upon transition. For public companies, the update is effective for any annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Group expects there is no material impact upon adoption of this guidance on the Group’s consolidated financial statements. In September 2017, the FASB issued ASU No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments.” The amendments in ASU No. 2017-13 amend the early adoption date option for certain companies related to the adoption of ASU No. 2014-09 and ASU No. 2016-02. The effective date is the same as the effective date and transition requirements for the amendments for ASU 2014-09 and ASU 2016-02. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax | The components of income before income taxes are as follows: Year ended March 31, 2016 2017 2018 $ $ $ Hong Kong 1,361 513 955 China 146 248 1,060 Myanmar — — 57 1,507 761 2,072 |
Schedule of provision for income taxes | The provision for income taxes consists of the following: Year ended March 31, 2016 2017 2018 $ $ $ Hong Kong Current tax 143 103 156 China Current tax 100 133 356 Total 243 236 512 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation between the provision for income taxes computed by applying the Hong Kong profits tax rate to profit before income taxes, the actual provision for income taxes is as follows: Year ended March 31, 2016 2017 2018 % % % Profits tax rate in Hong Kong 16.5 16.5 16.5 Non-deductible items/non-taxable income (Note) 9.7 15.2 2.1 Changes in valuation allowances (6.8 ) (5.9 ) (1.4 ) Overprovision of profits tax in prior year (0.2 ) (0.5 ) (2.1 ) Effect of different tax rate of subsidiaries operating in other jurisdictions 0.8 2.8 4.3 Others (4.0 ) 2.9 5.2 Effective tax rate 16.0 31.0 24.6 Note: Amount primarily represents non-deductible administrative expenses incurred by Nissin PRC and the Company. |
Schedule of deferred tax assets and liabilities | Deferred income tax (assets) liabilities are as follows: As of March 31, 2017 2018 $ $ Deferred tax liability: Property, plant and equipment 33 32 Deferred tax asset: Tax loss carryforwards (568 ) (474 ) Deferred deductible expenses — (74 ) Valuation allowance 567 548 Total net deferred tax asset (1 ) — Net deferred tax liability 32 32 |
Schedule of valuation allowance | Movement of valuation allowances are as follows: Year ended March 31, 2016 2017 2018 $ $ $ At the beginning of the year 722 612 567 Changes in prior year tax losses carried forward (8 ) — — Current year reduction (102 ) (45 ) (19 ) At the end of the year 612 567 548 |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Cash And Cash Equivalents Tables | |
Schedule of cash and cash equivalents | Cash and cash equivalents consisted of the following: As of March 31, 2017 2018 $ $ Cash on hand 2 2 Bank deposits 8,095 9,347 Short term investments 1,931 1,918 10,028 11,267 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Accounts Receivable Net Tables | |
Schedule of accounts receivable, net | Accounts receivable, net is analyzed as follows: As of March 31, 2017 2018 $ $ Accounts receivable 3,469 2,223 Allowances for doubtful accounts (66 ) — 3,403 2,223 |
Schedule of allowances for doubtful accounts | Details of the movements of the allowances for doubtful accounts are as follows: Year ended March 31, 2016 2017 2018 $ $ $ At beginning of year 6 6 66 Allowance (reverse) for the year — 60 (66 ) At end of year 6 66 — |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories consisted of the following: As of March 31, 2017 2018 $ $ Raw materials 1,914 2,112 Work in progress 71 116 Finished goods 280 705 2,265 2,933 |
PROPERTY, PLANT AND EQUIPMENT31
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment, net consisted of the following: As of March 31, 2017 2018 $ $ At cost: Machinery and equipment 12,386 12,482 Furniture and fixtures 442 443 Leasehold improvements 506 517 Motor vehicles 153 153 Total 13,487 13,595 Less: Accumulated depreciation and impairment (12,533 ) (12,825 ) Property, plant and equipment, net 954 770 |
INVESTMENTS IN EQUITY METHOD 32
INVESTMENTS IN EQUITY METHOD INVESTEE (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of equity method investments | The following table provides a reconciliation of the investments in equity method investees in the Group’s consolidated balance sheets as of March 31, 2017 and 2018 and the amount of underlying equity in net assets of the equity investees: As of March 31, 2017 2018 $ $ The Group’s proportionate share of equity in the net assets of equity investees 5 5 Less: Accumulated impairment losses recognized (5 ) (5 ) Investments in equity investees reported in the consolidated balance sheets — — |
ACCRUED EXPENSES AND OTHER CU33
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Accrued Liabilities Current and Other Liabilities Current [Abstract] | |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of the following: As of March 31, 2017 2018 $ $ Accrued payroll 329 620 Accrued housing allowance 606 548 Accrued other social benefit 1,325 1,792 Deposits received from customers 20 17 Unbilled purchases from suppliers 178 238 Accrued audit fee 251 257 Others 344 510 3,053 3,982 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of operating leases requiring minimum lease payments | As of March 31, 2018, the Group is committed under operating leases requiring minimum lease payments as follows: $ Year ending March 31, 2019 1,296 2020 1,196 2021 and thereafter — 2,492 |
CONCENTRATIONS OF CREDIT RISK35
CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Schedule of accounts receivable | Accounts receivable from the three customers with the largest receivable balances as of March 31, 2017 and 2018 are as follows: Percentage of accounts receivable 2017 2018 % % Customer A 47.9 54.9 Customer B 13.0 9.0 Customer C 12.0 9.0 Three largest receivable balances 72.9 72.9 |
Schedule of Revenue by Major Customers by Reporting Segments | A substantial percentage of the Group’s sales are made to four customers and are typically on an open account basis. Customers accounting for 10% or more of total net sales in any of the years ended March 31, 2016, 2017 and 2018 are as follows: Year ended March 31, 2016 2017 2018 % % % Customer A (note a) 44.1 46.0 51.4 Customer B (note a) N/A 10.7 15.8 Customer C (note b) 12.2 11.6 10.8 Customer D (note b) 14.0 11.0 N/A 70.3 79.3 78.0 Notes: (a) Sales to this customer were reported in both of the Metal Stamping and Mechanical OEM and Electric OEM operating segments. (b) Sales to this customer were reported in the Electric OEM operating segment. |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Net income per share: | |
Schedule of basic and diluted net income per share | The following table sets forth the computation of basic and diluted net income per share for years indicated: Year ended March 31, 2016 2017 2018 $ $ $ Net income attributable to Highway Holdings Limited’s shareholders, basic and diluted 1,251 527 1,550 Shares: Weighted average common shares used in computing basic net income per share 3,801,874 3,801,874 3,801,874 Net income per share, basic 0.33 0.14 0.41 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | A summary of the net sales, profitability information and asset information by segment and geographical areas is shown below: Year ended March 31, 2016 2017 2018 $ $ $ Net sales: Metal stamping and Mechanical OEM 10,268 8,323 9,638 Electric OEM 12,667 11,280 9,528 Total net sales 22,935 19,603 19,166 Operating income: Metal stamping and Mechanical OEM 738 267 955 Electric OEM 916 646 1,123 Corporate (138 ) (152 ) (140 ) Total operating income 1,516 761 1,938 Depreciation and amortization expense: Metal stamping and Mechanical OEM 137 107 160 Electric OEM 180 159 159 Total depreciation and amortization 317 266 319 Capital expenditure: Metal stamping and Mechanical OEM 226 88 136 Electric OEM 298 109 135 Total capital expenditure 524 197 271 As of March 31, 2017 2018 $ $ Total assets: Metal stamping and Mechanical OEM 7,374 8,402 Electric OEM 8,597 9,535 Corporate 1,581 193 Total assets 17,552 18,130 As of March 31, 2017 2018 $ $ Property, plant and equipment: Metal stamping and Mechanical OEM 412 391 Electric OEM 542 379 Total property, plant and equipment 954 770 |
Schedule of geographical segment | The breakdown by geographic area is as follows: Year ended March 31, 2016 2017 2018 $ $ $ Net sales: Hong Kong and China 5,662 4,700 4,086 Europe 16,342 14,037 14,446 Other Asian countries 134 31 46 North America 797 835 588 22,935 19,603 19,166 |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Significant Accounting Policies [Line Items] | |||
Comprehensive (loss) income includes net (loss) income and foreign currency translation adjustments | $ 136 | $ (102) | $ (42) |
Machinery and Equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 10 years | ||
Other Property, Plant and Equipment [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 2 years | ||
Other Property, Plant and Equipment [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 5 years |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Examination [Line Items] | |||
Income before income taxes | $ 2,072 | $ 761 | $ 1,507 |
Hong Kong [Member] | |||
Income Tax Examination [Line Items] | |||
Income before income taxes | 955 | 513 | 1,361 |
China [Member] | |||
Income Tax Examination [Line Items] | |||
Income before income taxes | 1,060 | $ 248 | $ 146 |
Myanmar [Member] | |||
Income Tax Examination [Line Items] | |||
Income before income taxes | $ 57 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Current tax | $ 512 | $ 236 | $ 243 |
Hong Kong [Member] | |||
Current tax | 156 | 103 | 143 |
China [Member] | |||
Current tax | $ 356 | $ 133 | $ 100 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Profits tax rate in Hong Kong | 16.50% | 16.50% | 16.50% |
Non-deductible items/non-taxable income (Note) | 2.10% | 15.20% | 9.70% |
Changes in valuation allowances | (1.40%) | (5.90%) | (6.80%) |
Overprovision of profits tax in prior year | (2.10%) | (0.50%) | (0.20%) |
Effect of different tax rate of subsidiaries operating in other jurisdictions | 4.30% | 2.80% | 0.80% |
Others | 5.20% | 2.90% | (4.00%) |
Effective tax rate | 24.60% | 31.00% | 16.00% |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 |
Deferred tax liability: | ||||
Property, plant and equipment | $ 32 | $ 33 | ||
Deferred tax asset: | ||||
Tax loss carryforwards | (474) | (568) | ||
Deferred deductible expenses | (74) | |||
Valuation allowance | 548 | 567 | $ 612 | $ 722 |
Total net deferred tax asset | (1) | |||
Net deferred tax liability | $ 32 | $ 32 |
INCOME TAXES (Details 4)
INCOME TAXES (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Movement of Valuation Allowances [Roll Forward] | |||
At the beginning of the year | $ 567 | $ 612 | $ 722 |
Changes in prior year tax losses carry forward | (8) | ||
Current year reduction | (19) | (45) | (102) |
At the end of the year | $ 548 | $ 567 | $ 612 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Examination [Line Items] | |||
Deferred tax assets operating loss carryforwards indefinitely | $ 2,874 | $ 3,444 | |
Operating loss carry forward expiration date | Expire five years from respective financial years incurring the losses. | Expire five years from respective financial years incurring the losses. | |
Hong Kong [Member] | |||
Income Tax Examination [Line Items] | |||
Effective income tax rate reconciliation, at federal statutory income tax rate | 16.50% | 16.50% | 16.50% |
China [Member] | |||
Income Tax Examination [Line Items] | |||
Effective income tax rate reconciliation, at federal statutory income tax rate | 25.00% |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 |
Cash And Cash Equivalents Details | ||||
Cash on hand | $ 2 | $ 2 | ||
Bank deposits | 9,347 | 8,095 | ||
Short term investments | 1,918 | 1,931 | ||
Total cash and cash equivalent | $ 11,267 | $ 10,028 | $ 9,140 | $ 9,727 |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 |
Accounts Receivable Net Details | ||||
Accounts receivable | $ 2,223 | $ 3,469 | ||
Allowances for doubtful accounts | (66) | $ (6) | $ (6) | |
Accounts receivable Total | $ 2,223 | $ 3,403 |
ACCOUNTS RECEIVABLE, NET (Det47
ACCOUNTS RECEIVABLE, NET (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Accounts Receivable Net Details 1 | |||
At beginning of year | $ 66 | $ 6 | $ 6 |
Allowance (reverse) for the year | (66) | 60 | |
At end of year | $ 66 | $ 6 |
INVENTORIES, NET (Details)
INVENTORIES, NET (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,112 | $ 1,914 |
Work in progress | 116 | 71 |
Finished goods | 705 | 280 |
Inventory Net | $ 2,933 | $ 2,265 |
INVENTORIES, NET (Details Narra
INVENTORIES, NET (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |||
Slow moving inventories | $ 45 | $ 41 | $ 25 |
PROPERTY, PLANT AND EQUIPMENT50
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Property, plant and equipment, at cost | $ 13,595 | $ 13,487 |
Less: Accumulated depreciation and impairment | (12,825) | (12,533) |
Property, plant and equipment, net | 770 | 954 |
Machinery and Equipment [Member] | ||
Property, plant and equipment, at cost | 12,482 | 12,386 |
Furniture and Fixtures [Member] | ||
Property, plant and equipment, at cost | 443 | 442 |
Leasehold Improvements [Member] | ||
Property, plant and equipment, at cost | 517 | 506 |
Motor Vehicles [Member] | ||
Property, plant and equipment, at cost | $ 153 | $ 153 |
PROPERTY, PLANT AND EQUIPMENT51
PROPERTY, PLANT AND EQUIPMENT, NET (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 319 | $ 266 | $ 317 |
Write off of property, plant and equipment | $ 113 | $ 117 |
INVESTMENTS IN EQUITY METHOD 52
INVESTMENTS IN EQUITY METHOD INVESTEES (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Equity Method Investments and Joint Ventures [Abstract] | ||
The Group's proportionate share of equity in the net assets of equity investees | $ 5 | $ 5 |
Less: Accumulated impairment losses recognized | (5) | (5) |
Investments in equity investees reported in the consolidated balance sheet |
INVESTMENTS IN EQUITY METHOD 53
INVESTMENTS IN EQUITY METHOD INVESTEES (Details Narrative) | Dec. 31, 2018 | Dec. 31, 2017 |
Kayser Technik Inc [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment ownership percentage | 50.00% | 50.00% |
ACCRUED EXPENSES AND OTHER CU54
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Accrued Liabilities Current and Other Liabilities Current [Abstract] | ||
Accrued payroll | $ 620 | $ 329 |
Accrued housing allowance | 548 | 606 |
Accrued other social benefit | 1,792 | 1,325 |
Deposits received from customers | 17 | 20 |
Unbilled purchases from suppliers | 238 | 178 |
Accrued audit fee | 257 | 251 |
Others | 510 | 344 |
Accrued Liabilities and Other Liabilities Current | $ 3,982 | $ 3,053 |
COMMITMENTS AND CONTINGENCIES55
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 1,296 |
2,020 | 1,196 |
2021 and thereafter | |
Operating leases requiring minimum lease payments | $ 2,492 |
COMMITMENTS AND CONTINGENCIES56
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rental expense | $ 1,281 | $ 1,145 | $ 1,111 |
Capital expenditure contracted for property, plant and equipment | $ 20 |
TREASURY STOCK (Details Narrati
TREASURY STOCK (Details Narrative) - shares | Mar. 31, 2018 | Mar. 31, 2017 |
Equity [Abstract] | ||
Number of shares held in treasury | 5,049 | 5,049 |
CONCENTRATIONS OF CREDIT RISK58
CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS (Details) - Accounts Receivable [Member] | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Three largest receivable balances | 72.90% | 72.90% |
Customer A [Member] | ||
Three largest receivable balances | 54.90% | 47.90% |
Customer B [Member] | ||
Three largest receivable balances | 9.00% | 13.00% |
Customer C [Member] | ||
Three largest receivable balances | 9.00% | 12.00% |
CONCENTRATIONS OF CREDIT RISK59
CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS (Details 1) | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | ||
Accounts Receivable Percentage | 78.00% | 79.30% | 70.30% | |
Customer A [Member] | ||||
Accounts Receivable Percentage | [1] | 51.40% | 46.00% | 44.10% |
Customer B [Member] | ||||
Accounts Receivable Percentage | [1] | 15.80% | 10.70% | 0.00% |
Customer C [Member] | ||||
Accounts Receivable Percentage | [2] | 10.80% | 11.60% | 12.20% |
Customer D [Member] | ||||
Accounts Receivable Percentage | [2] | 0.00% | 11.00% | 14.00% |
[1] | Sales to this customer were reported in both of the Metal Stamping and Mechanical OEM and Electric OEM operating segments. | |||
[2] | Sales to this customer were reported in the Electric OEM operating segment. |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Net income per share: | |||
Net income attributable to Highway Holdings Limited's shareholders, basic and diluted | $ 1,550 | $ 527 | $ 1,251 |
Shares: | |||
Weighted average common shares used in computing basic net income per share | 3,801,874 | 3,801,874 | 3,801,874 |
Net income per share, basic (in dollars per share) | $ 0.41 | $ 0.14 | $ 0.33 |
STAFF RETIREMENT PLANS (Details
STAFF RETIREMENT PLANS (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Employer matching contribution percent | 5.00% | ||
Cost of contribution to the staff retirement plans | $ 242 | $ 227 | $ 212 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue, Major Customer [Line Items] | |||
Net sales: | $ 19,166 | $ 19,603 | $ 22,935 |
Operating income: | 1,938 | 761 | 1,516 |
Depreciation and amortization expense: | 319 | 266 | 317 |
Capital expenditure: | 271 | 197 | 524 |
Total assets: | 18,130 | 17,552 | |
Property, plant and equipment: | 770 | 954 | |
Metal Stamping and Mechanical OEM [Member] | |||
Revenue, Major Customer [Line Items] | |||
Net sales: | 9,638 | 8,323 | 10,268 |
Operating income: | 955 | 267 | 738 |
Depreciation and amortization expense: | 160 | 107 | 137 |
Capital expenditure: | 136 | 88 | 226 |
Total assets: | 8,402 | 7,374 | |
Property, plant and equipment: | 391 | 412 | |
Electric OEM [Member] | |||
Revenue, Major Customer [Line Items] | |||
Net sales: | 9,528 | 11,280 | 12,667 |
Operating income: | 1,123 | 646 | 916 |
Depreciation and amortization expense: | 159 | 159 | 180 |
Capital expenditure: | 135 | 109 | 298 |
Total assets: | 9,535 | 8,597 | |
Property, plant and equipment: | 379 | 542 | |
Corporate [Member] | |||
Revenue, Major Customer [Line Items] | |||
Operating income: | (140) | (152) | $ (138) |
Total assets: | $ 193 | $ 1,581 |
SEGMENT INFORMATION (Details 1)
SEGMENT INFORMATION (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Net sales: | $ 19,166 | $ 19,603 | $ 22,935 |
Hong Kong And China [Member] | |||
Net sales: | 4,086 | 4,700 | 5,662 |
Other Asian Countries [Member] | |||
Net sales: | 46 | 31 | 134 |
Europe [Member] | |||
Net sales: | 14,446 | 14,037 | 16,342 |
North America [Member] | |||
Net sales: | $ 588 | $ 835 | $ 797 |
SEGMENT INFORMATION (Details Na
SEGMENT INFORMATION (Details Narrative) | 12 Months Ended |
Mar. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |